Analyzing PyroGenesis Canada (NASDAQ:PYRGF) & Zymeworks (NASDAQ:ZYME)

Zymeworks (NASDAQ:ZYME) and PyroGenesis Canada (NASDAQ:PYRGF) are both small-cap manufacturing companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Analyst Recommendations

This is a summary of recent ratings for Zymeworks and PyroGenesis Canada, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zymeworks	1	1	7	2	2.91
PyroGenesis Canada	0	0	0	0	0.00

Zymeworks presently has a consensus target price of $38.00, suggesting a potential upside of 51.21%. Given Zymeworks’ stronger consensus rating and higher possible upside, analysts plainly believe Zymeworks is more favorable than PyroGenesis Canada.

Insider & Institutional Ownership

92.9% of Zymeworks shares are held by institutional investors. Comparatively, 0.0% of PyroGenesis Canada shares are held by institutional investors. 33.5% of Zymeworks shares are held by company insiders. Comparatively, 47.7% of PyroGenesis Canada shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Zymeworks and PyroGenesis Canada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zymeworks	-126.92%	-37.97%	-25.31%
PyroGenesis Canada	-115.14%	N/A	-60.81%

Volatility and Risk

Zymeworks has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, PyroGenesis Canada has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Earnings and Valuation

This table compares Zymeworks and PyroGenesis Canada”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zymeworks	$105.96 million	17.32	-$81.13 million	($1.37)	-18.34
PyroGenesis Canada	$9.14 million	4.81	-$21.12 million	($0.04)	-5.31

PyroGenesis Canada has lower revenue, but higher earnings than Zymeworks. Zymeworks is trading at a lower price-to-earnings ratio than PyroGenesis Canada, indicating that it is currently the more affordable of the two stocks.

Summary

Zymeworks beats PyroGenesis Canada on 9 of the 15 factors compared between the two stocks.

About Zymeworks

Zymeworks Inc., a clinical-stage biopharmaceutical company, discovers, develops, and commercializes biotherapeutics for the treatment of cancer. The company’s lead product candidates include zanidatamab, a novel bispecific antibody that is in Phase 1 and Phase 2 clinical trials for the treatment of biliary tract, gastroesophageal adenocarcinomas, and breast cancer; and ZW49, a biparatopic anti- human epidermal growth factor receptor 2 (HER2) antibody-drug conjugate that is in Phase 1 clinical trial for the treatment of advanced or metastatic HER2-expressing tumors. The company has strategic partnerships with Merck Sharp & Dohme Research Ltd.; Eli Lilly and Company; Bristol-Myers Squibb company; GlaxoSmithKline Intellectual Property Development Ltd.; Daiichi Sankyo Co., Ltd.; Janssen Biotech, Inc.; and BeiGene, Ltd. It also has licensing and research collaboration with LEO Pharma A/S to discover and develop bispecific antibodies; and Iconic Therapeutics, Inc. Zymeworks Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

About PyroGenesis Canada

PyroGenesis Canada Inc. designs, develops, manufactures, and commercializes plasma processes and solutions worldwide. The company offers DROSRITE, a process for enhancing metal recovery from dross without any hazardous by-products; plasma atomization process that allows produce and sell high purity spherical metal powders; PUREVAP, a process to produce high purity metallurgical and solar grade silicon from quartz; and PUREVAP NSiR, which is designed to transform silicon into spherical silicon nano powders and nanowires for use in lithium-ion batteries. It provides plasma torches and plasma torch systems used toreplace fossil fuel burners in industrial iron ore pelletization process; plasma arc waste destruction systems for waste destruction onboard ships; steam plasma arc refrigerant cracking systems for the destruction of certain refrigerants, including chlorofluorocarbons, hydrofluorocarbons, and hydrochlorofluorocarbons; plasma arc chemical warfare agent destruction systems, which are mobile platforms for the onsite destruction of chemical warfare agents; plasma resource recovery systems for land-based waste destruction and waste-to-energy applications; plasma torches for waste gasification and combustion; and plasma arc gasification and vitrification. In addition, it offers engineering and manufacturing expertise, and contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, additive manufacturing (including 3D printing), oil and gas, and environmental industries. Further, the company provides installation, commissioning, and start-up services. PyroGenesis Canada Inc. is headquartered in Montreal, Canada.